##### Table of Contents



FORM 10-Q
 SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2009
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission file number: 1-10986
 MISONIX, INC.
 (Exact name of registrant as specified in its charter)
 New York
    
    11-2148932(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer
Identification No.)1938 New Highway, Farmingdale, NY
    
    11735(Address of principal executive offices)
    
    (Zip Code)
 (Registrants telephone number, including area code)
  þ o
  o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
(Do not check if a smaller reporting company)
    
    Smaller reporting company þ
  o þ
  Outstanding atClass of Common Stock
    
    November 11, 2009Common Stock, $.01 par value
    
    7,001,369




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##### 



MISONIX, INC.
 INDEX
 PagePart I   FINANCIAL INFORMATIONItem 1. Financial Statements:Consolidated Balance Sheets as of 

September 30, 2009 (Unaudited) and June 30, 2009
    
    
    3Consolidated Statements of Operations
Three months ended September 30, 2009
and 2008 (Unaudited)
    
    
    4Consolidated Statement of Stockholders Equity 

Three months ended September 30, 2009 (Unaudited)
    
    
    5Consolidated Statements of Cash Flows 

Three months ended September 30, 2009 and September 30, 2008
(Unaudited)
    
    
    6Notes to Consolidated Financial Statements
    
    
    7Item 2. Managements Discussion and Analysis of Financial Condition
and Results of Operations
    
    
    18Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    23Item 4T. Controls and Procedures
    
    
    23Part II OTHER INFORMATIONItem 1A. Risk Factors
    
    
    24Item 6. Exhibits
    
    
    24Signatures
    
    
    25EX-31.1EX-31.2EX-32.1EX-32.2
   2




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##### Table of Contents



PART I  FINANCIAL INFORMATION
 
 Item 1.
    
    Financial Statements.
 MISONIX, INC. and Subsidiaries
 
 Consolidated Balance Sheets
 September 30,
    
    
    June 30,2009
    
    
    2009(Derived fromaudited financial(Unaudited)
    
    
    statements)AssetsCurrent assets:Cash
    
    $
    5,680,200
    
    
    $
    3,415,813Accounts receivable, less allowance for doubtful accounts of
$378,543 and $334,399, respectively
    
    
    2,291,613
    
    
    
    3,301,551Inventories, net
    
    
    3,799,061
    
    
    
    3,678,743Deferred income taxes
    
    
    1,014,262
    
    
    
    762,429Prepaid expenses and other current assets
    
    
    740,012
    
    
    
    715,589Current assets of discontinued operations  Labcaire
    
    
    
    
    
    
    5,460,052Current assets held for sale  Sonora
    
    
    3,526,543
    
    
    
    3,659,383Total current assets
    
    
    17,051,691
    
    
    
    20,993,560Property, plant and equipment, net
    
    
    546,489
    
    
    
    588,191Deferred income taxes
    
    
    221,344
    
    
    
    128,183Goodwill
    
    
    2,020,838
    
    
    
    2,016,941Other assets
    
    
    1,558,571
    
    
    
    757,551Assets of discontinued operations  Labcaire
    
    
    
    
    
    
    6,937,810Assets held for sale  Sonora
    
    
    3,717,198
    
    
    
    3,741,170Total assets
    
    $
    25,116,131
    
    
    $
    35,163,406Liabilities and stockholders equityCurrent liabilities:Revolving credit facilities
    
    $
    1,609,122
    
    
    $
    2,633,059Notes payable
    
    
    132,031
    
    
    
    261,485Accounts payable
    
    
    936,682
    
    
    
    690,004Accrued expenses and other current liabilities
    
    
    655,254
    
    
    
    807,691Foreign income taxes payable
    
    
    37,459
    
    
    
    10,363Current maturities of capital lease obligations
    
    
    13,769
    
    
    
    13,523Current liabilities of discontinued operations  Labcaire
    
    
    
    
    
    
    8,097,279Current liabilities related to assets held for sale  Sonora
    
    
    674,751
    
    
    
    712,256Total current liabilities
    
    
    4,059,068
    
    
    
    13,225,660Capital lease obligations
    
    
    24,161
    
    
    
    27,716Deferred lease liability
    
    
    28,956
    
    
    
    38,607Deferred income taxes
    
    
    405,776
    
    
    
    405,776Deferred income
    
    
    195,129
    
    
    
    201,207Liabilities related to assets held for sale  Sonora
    
    
    253,930
    
    
    
    280,652Total liabilities
    
    
    4,967,020
    
    
    
    14,179,618Commitments and contingenciesStockholders equity:Misonix, Inc. Stockholders equity:Common stock, $.01 par valueshares authorized 20,000,000;
7,079,169 issued and 7,001,369 outstanding
    
    
    70,792
    
    
    
    70,792Additional paidin capital
    
    
    25,284,215
    
    
    
    25,251,412Accumulated deficit
    
    
    (4,600,393
    )
    
    
    (3,824,003
    )Accumulated other comprehensive loss
    
    
    (467,658
    )
    
    
    (348,936
    )Treasury stock, 77,800 shares
    
    
    (412,424
    )
    
    
    (412,424
    )Total Misonix, Inc. stockholders equity
    
    
    19,874,532
    
    
    
    20,736,841Noncontrolling interests
    
    
    274,579
    
    
    
    246,947Total stockholders equity
    
    
    20,149,111
    
    
    
    20,983,788Total liabilities and stockholders equity
    
    $
    25,116,131
    
    
    $
    35,163,406
 See Accompanying Notes to Consolidated Financial Statements.
  3




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##### Table of Contents



MISONIX, INC. and Subsidiaries
 
 Consolidated Statements of Operations  (Unaudited)
 For the three months endedSeptember 30 ,2009
    
    
    2008Net sales
    
    $
    2,746,684
    
    
    $
    3,143,199Cost of goods sold
    
    
    1,624,543
    
    
    
    1,913,674Gross profit
    
    
    1,122,141
    
    
    
    1,229,525Operating expenses:Selling expenses
    
    
    949,413
    
    
    
    798,326General and administrative expenses
    
    
    1,345,256
    
    
    
    1,503,601Research and development expenses
    
    
    422,469
    
    
    
    320,632Total operating expenses
    
    
    2,717,138
    
    
    
    2,622,559Operating loss from continuing operations
    
    
    (1,594,997
    )
    
    
    (1,393,034
    )Other income (expense):Interest income
    
    
    14,028
    
    
    
    31,051Interest expense
    
    
    (28,088
    )
    
    
    (46,262
    )Royalty income and license fees
    
    
    156,623
    
    
    
    176,227Royalty expense
    
    
    
    
    
    
    (3,584
    )Recovery of Focus Surgery, Inc. investment
    
    
    
    
    
    
    1,516,866Other
    
    
    10,164
    
    
    
    (24,242
    )Total other income
    
    
    152,727
    
    
    
    1,650,056(Loss)
income from continuing operations before income taxes
    
    
    (1,442,270
    )
    
    
    257,022Income tax (benefit) provision
    
    
    (245,764
    )
    
    
    149,436Net (loss) income from continuing operations
    
    
    (1,196,506
    )
    
    
    107,586Discontinued operations:Net income from discontinued operations, net of tax of $0 and $85,901  Ultrasonics
    
    
    
    
    
    
    118,624Net income from discontinued operations, net of tax of $32,429 and $33,329  Sonora
    
    
    128,987
    
    
    
    46,026Net income from discontinued operations, net of tax of $437,968 and $25,850  Labcaire
    
    
    514,477
    
    
    
    60,316Net loss on the sale of Labcaire, net of tax of $100,163
    
    
    (195,716
    )
    
    
    Total net income from discontinued operations
    
    
    447,748
    
    
    
    224,966Net (loss) income
    
    
    (748,758
    )
    
    
    332,552Net income attributable to noncontrolling interests
    
    
    27,632
    
    
    
    12,550Net (loss) income attributable to Misonix, Inc. shareholders
    
    $
    (776,390
    )
    
    $
    320,002Net (loss) income per share from continuing operations  Basic
    
    $
    (.17
    )
    
    $
    0.02Net income per share from discontinued operations  Basic
    
    
    .06
    
    
    
    0.03Net (loss) income per share  Basic
    
    $
    (.11
    )
    
    $
    0.05Net (loss) income per share from continuing operations  Diluted
    
    $
    (.17
    )
    
    $
    0.02Net income per share from discontinued operations  Diluted
    
    
    .06
    
    
    
    0.03Net (loss) income per share  Diluted
    
    $
    (.11
    )
    
    $
    0.05Weighted average common shares outstanding  Basic
    
    
    7,001,369
    
    
    
    7,001,369Weighted average common shares outstanding  Diluted
    
    
    7,001,369
    
    
    
    7,031,953
 See Accompanying Notes to Consolidated Financial Statements
  4




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##### Table of Contents



MISONIX, INC. and Subsidiaries
 
 Consolidated Statement of Stockholders Equity  (Unaudited)
 Three months ended September 30, 2009
 Common Stock
    
    
    Treasury Stock
    
    
    
    
    
    
    
    
    
    
    Accumulated$.01 Par value
    
    
    Number
    
    
    
    
    
    
    Additional
    
    
    
    
    
    
    other
    
    
    
    
    
    
    TotalNumber
    
    
    
    
    
    
    of
    
    
    
    
    
    
    paid-in
    
    
    Accumulated
    
    
    comprehensive
    
    
    Noncontrolling
    
    
    stockholdersof shares
    
    
    Amount
    
    
    shares
    
    
    Amount
    
    
    capital
    
    
    deficit
    
    
    loss
    
    

interests
    
    
    equityBalance, June 30,
2009
    
    
    7,079,169
    
    
    $
    70,792
    
    
    
    (77,800
    )
    
    $
    (412,424
    )
    
    $
    25,251,412
    
    
    $
    (3,824,003
    )
    
    $
    (348,936
    )
    
    $
    246,947
    
    
    $
    20,983,788Net (loss) income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (776,390
    )
    
    
    
    
    
    
    27,632
    
    
    
    (748,758
    )Foreign
currency
translation
adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (118,722
    )
    
    
    
    
    
    
    (118,722
    )Comprehensive
loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (867,480
    )Stock-based compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    32,803
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    32,803Balance, September 30, 2009
    
    
    7,079,169
    
    
    $
    70,792
    
    
    
    (77,800
    )
    
    $
    (412,424
    )
    
    $
    25,284,215
    
    
    $
    (4,600,393
    )
    
    $
    (467,658
    )
    
    $
    274,579
    
    
    $
    20,149,111
 See Accompanying Notes to Consolidated Financial Statements.
  5




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MISONIX, INC. and Subsidiaries
 
 Consolidated Statements of Cash Flows  (Unaudited)
 For the three months endedSeptember 30,2009
    
    
    2008Operating activitiesNet (loss) income from continuing operations
    
    $
    (1,196,506
    )
    
    $
    107,586Adjustments to reconcile net (loss) income from
continuing operations to net cash
used in continuing operating activities:Depreciation and amortization and other non-cash items
    
    
    87,502
    
    
    
    116,927Bad debt expense
    
    
    14,045
    
    
    
    15,000Deferred income tax (benefit) expense
    
    
    (243,533
    )
    
    
    263,631Loss on disposal of property, plant and equipment
    
    
    90,439
    
    
    
    Stock-based compensation
    
    
    32,803
    
    
    
    53,025Deferred income
    
    
    (9,651
    )
    
    
    14,172Deferred leasehold costs
    
    
    (6,078
    )
    
    
    (4,638
    )Recovery of Focus Surgery, Inc. investment
    
    
    
    
    
    
    (1,516,866
    )Changes in operating assets and liabilities:Accounts receivable
    
    
    953,283
    
    
    
    505,882Inventories
    
    
    (123,310
    )
    
    
    (194,397
    )Income taxes
    
    
    (104,296
    )
    
    
    (15,285
    )Prepaid expenses and other current assets
    
    
    (24,424
    )
    
    
    2,109Accounts payable and other accrued liabilities
    
    
    94,241
    
    
    
    (454,875
    )Foreign income taxes payable
    
    
    (3,155
    )
    
    
    Other assets
    
    
    (697,758
    )
    
    
    (57,141
    )Change in assets held for sale
    
    
    
    
    
    
    (143,848
    )Net cash used in operating activities
    
    
    (1,136,398
    )
    
    
    (1,308,718
    )Investing activitiesAcquisition of property, plant and equipment
    
    
    (118,734
    )
    
    
    (76,942
    )Recovery of Focus Surgery, Inc. investment
    
    
    
    
    
    
    1,516,866Investment in UKHIFU Limited
    
    
    (3,897
    )
    
    
    Net cash
(used in) provided by investing activities
    
    
    (122,631
    )
    
    
    1,439,924Financing activitiesProceeds from short-term borrowings
    
    
    6,528,923
    
    
    
    6,896,194Payments of short-term borrowings
    
    
    (7,682,314
    )
    
    
    (7,594,075
    )Principal payments on capital lease obligations
    
    
    (3,309
    )
    
    
    (4,094
    )Net cash used in financing activities
    
    
    (1,156,700
    )
    
    
    (701,975
    )Cash flows from discontinued operationsNet cash
used in operating activities
    
    
    1,082,459
    
    
    
    229,143Net cash provided by investing activities
    
    
    3,600,000
    
    
    
    Net cash
provided by (used in) discontinued operations
    
    
    4,682,459
    
    
    
    229,143Effect of exchange rate changes on cash
    
    
    (2,343
    )
    
    
    5,189Net increase (decrease) in cash
    
    
    2,264,387
    
    
    
    (336,437
    )Cash at beginning of period
    
    
    3,415,813
    
    
    
    1,532,983Cash at end of period
    
    
    5,680,200
    
    
    $
    1,196,546Supplemental disclosure of cash flow information:Cash paid for:Interest
    
    $
    71,159
    
    
    $
    92,828Income taxes
    
    $
    25
    
    
    $
    52,274
 See Accompanying Notes to Consolidated Financial Statements.
  6




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##### Table of Contents



MISONIX, INC. and Subsidiaries
 
 Notes to Consolidated Financial Statements
 1.
    
    Basis of Presentation
    Subsequent Events
  Reclassification
  Discontinued Operations
     7




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##### Table of Contents



MISONIX, INC. and Subsidiaries
 Notes to Consolidated Financial Statements
  Sonora
 September 30,
    
    
    June 30,2009
    
    
    2009Cash
    
    $
    254,292
    
    
    $
    175,369Accounts receivable
    
    
    1,502,118
    
    
    
    1,734,761Inventory
    
    
    1,646,453
    
    
    
    1,502,076Other current assets
    
    
    123,680
    
    
    
    247,177Property, plant and equipment  net
    
    
    792,228
    
    
    
    816,200Goodwill
    
    
    2,924,970
    
    
    
    2,924,970Total assets held for sale
    
    $
    7,243,741
    
    
    $
    7,400,553Accounts payable
    
    $
    531,603
    
    
    $
    355,962Accrued expenses and other current liabilities
    
    
    143,148
    
    
    
    356,294Deferred lease
    
    
    214,752
    
    
    
    235,894Other liabilities
    
    
    39,178
    
    
    
    44,758Total liabilities related to assets held for sale
    
    $
    928,681
    
    
    $
    992,908
 Labcaire
 September 30,
    
    
    June 30,2009
    
    
    2009Cash
    
    
    
    
    
    $
    99,840Accounts receivable
    
    
    
    
    
    
    3,622,248Inventory
    
    
    
    
    
    
    1,446,497Other current assets
    
    
    
    
    
    
    291,467Property, plant and equipment  net
    
    
    
    
    
    
    4,142,303Deferred taxes
    
    
    
    
    
    
    1,160,363Other assets
    
    
    
    
    
    
    116,466Goodwill
    
    
    
    
    
    
    1,518,678Total assets of discontinued operations
    
    
    
    
    
    $
    12,397,862Revolving credit facility
    
    
    
    
    
    $
    1,820,891Accounts payable
    
    
    
    
    
    
    1,932,543Accrued expenses and other current liabilities
    
    
    
    
    
    
    2,336,389Tax payable
    
    
    
    
    
    
    785,466Gain from sale of building
    
    
    
    
    
    
    1,054,543Capital leases
    
    
    
    
    
    
    167,447Total liabilities of discontinued operations
    
    
    
    
    
    $
    8,097,279
  8




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##### Table of Contents



MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
  For the three months endedSeptember 30,2009
    
    
    2008Revenues
    
    $
    3,923,161
    
    
    $
    8,163,274Income from discontinued operations, before tax
    
    $
    1,113,861
    
    
    $
    370,046Loss on sale of Labcaire
    
    
    (295,879
    )
    
    
    Income tax expense
    
    
    370,234
    
    
    
    145,080Income from discontinued operations, net of tax
    
    $
    447,748
    
    
    $
    224,966
 2.
    
    Net Income (Loss) Per Share of Common Stock   For the three months endedSeptember 30,2009
    
    
    2008Basic shares
    
    
    7,001,369
    
    
    
    7,001,369Dilutive effect of stock options
    
    
    
    
    
    
    30,584Diluted shares
    
    
    7,001,369
    
    
    
    7,031,953
   9




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##### Table of Contents



MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
 3.
    
    Comprehensive (Loss) Income
  4.
    
    Stock-Based Compensation
     For the three months endedSeptember 30,2009
    
    
    2008Risk-free interest rate
    
    
    3.1
    %
    
    
    3.3
    %Expected option life in years
    
    
    6.5
    
    
    
    6.5Expected stock price volatility
    
    
    73.5
    %
    
    
    54.2
    %Expected dividend yield
    
    
    0
    %
    
    
    0
    %Weighted-average fair value of options
granted
    
    $
    1.95
    
    
    $
    1.30
  10




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##### Table of Contents



MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
   OptionsWeightedAverageWeighted
    
    
    RemainingAverage
    
    
    Contractual
    
    
    AggregateNumber of
    
    
    Exercise
    
    
    Life
    
    
    IntrinsicShares
    
    
    Price
    
    
    (years)
    
    
    Value (a)Outstanding as of June 30, 2009
    
    
    1,799,918
    
    
    
    5.21
    
    
    
    5.4Granted
    
    
    148,300
    
    
    
    2.44Forfeited
    
    
    (11,510
    )
    
    
    5.34Expired
    
    
    
    
    
    
    Outstanding as of September 30, 2009
    
    
    1,936,708
    
    
    
    5.00
    
    
    
    5.6
    
    
    $
    9,300Exercisable and vested at September 30,
2009
    
    
    1,454,563
    
    
    
    5.82
    
    
    
    4.6
    
    
    $
    Available for grant at September 30, 2009
    
    
    184,161
 (a)
    
    Intrinsic value for purposes of this table represents the amount by which the fair value
of the underlying stock, based on the respective market prices at September 30, 2009
or if exercised, the exercise dates, exceeds the exercise prices of the respective
options. 5.
    
    Focus Surgery, Inc.   11




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##### Table of Contents



MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
 6.
    
    Income Taxes
   7.
    
    Inventories
  September 30,
    
    
    June 30,2009
    
    
    2009Raw materials
    
    $
    2,275,699
    
    
    $
    2,380,827Workinprocess
    
    
    1,097,245
    
    
    
    876,918Finished goods
    
    
    1,228,349
    
    
    
    1,199,2304,601,293
    
    
    
    4,456,975Less valuation reserve
    
    
    802,232
    
    
    
    778,232$
    3,799,061
    
    
    $
    3,678,743
 8.
    
    Accrued Expenses and Other Current Liabilities
  September 30,
    
    
    June 30,2009
    
    
    2009Accrued payroll and vacation
    
    $
    354,878
    
    
    $
    378,933Accrued VAT and sales tax
    
    
    28,321
    
    
    
    30,227Accrued commissions and bonuses
    
    
    147,482
    
    
    
    245,852Accrued professional fees
    
    
    48,773
    
    
    
    11,762Other
    
    
    75,800
    
    
    
    140,917$
    655,254
    
    
    $
    807,691
  12




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##### Table of Contents



MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
 9.
    
    Revolving Credit Facilities
   1 2
 10.
    
    Commitments and Contingencies
  11.
    
    Business Segments
 ® June 30, 2009.
  13




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##### Table of Contents



MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
   Medical Device
    
    
    Laboratory and
    
    
    Corporate andProducts
    
    
    Scientific Products
    
    
    Unallocated
    
    
    TotalNet sales
    
    $
    2,118,951
    
    
    $
    627,733
    
    
    $
    
    
    
    $
    2,746,684Cost of goods sold
    
    
    1,097,349
    
    
    
    527,194
    
    
    
    
    
    
    
    1,624,543Gross profit
    
    
    1,021,602
    
    
    
    100,539
    
    
    
    
    
    
    
    1,122,141Selling expenses
    
    
    828,961
    
    
    
    120,452
    
    
    
    
    
    
    
    949,413Research and development
expenses
    
    
    336,695
    
    
    
    85,774
    
    
    
    
    
    
    
    422,469General and administrative
expenses
    
    
    
    
    
    
    
    
    
    
    1,345,256
    
    
    
    1,345,256Total operating expenses
    
    
    1,165,656
    
    
    
    206,226
    
    
    
    1,345,256
    
    
    
    2,717,138Operating
loss from continuing operations
    
    $
    (144,054
    )
    
    $
    (105,687
    )
    
    $
    (1,345,256
    )
    
    $
    (1,594,997
    )Net income from discontinued operations, net of tax
    
    $
    128,987
    
    
    $
    318,761
    
    
    $
    
    
    
    $
    447,748
  14




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MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
  Medical Device
    
    
    Laboratory and
    
    
    Corporate andProducts
    
    
    Scientific Products
    
    
    Unallocated
    
    
    TotalNet sales
    
    $
    2,496,037
    
    
    $
    647,162
    
    
    $
    
    
    
    $
    3,143,199Cost of goods sold
    
    
    1,417,877
    
    
    
    495,797
    
    
    
    
    
    
    
    1,913,674Gross profit
    
    
    1,078,160
    
    
    
    151,365
    
    
    
    
    
    
    
    1,229,525Selling expenses
    
    
    691,655
    
    
    
    106,671
    
    
    
    
    
    
    
    798,326Research and development
expenses
    
    
    271,474
    
    
    
    49,158
    
    
    
    
    
    
    
    320,632General and administrative
expenses
    
    
    
    
    
    
    
    
    
    
    1,503,601
    
    
    
    1,503,601Total operating expenses
    
    
    963,129
    
    
    
    155,829
    
    
    
    1,503,601
    
    
    
    2,622,559Operating
income (loss) from continuing operations
    
    $
    115,031
    
    
    $
    (4,464
    )
    
    $
    (1,503,601
    )
    
    $
    (1,393,034
    )Net income
from discontinued operations, net of tax
    
    $
    46,026
    
    
    $
    178,940
    
    
    $
    
    
    
    $
    224,966
  Three months ended September 30,2009
    
    
    2008United States
    
    $
    2,145,054
    
    
    $
    2,199,171United Kingdom
    
    
    116,409
    
    
    
    176,420Europe
    
    
    247,179
    
    
    
    226,756Asia
    
    
    163,421
    
    
    
    198,728Canada and Mexico
    
    
    51,056
    
    
    
    75,176Middle East
    
    
    
    
    
    
    97,336Other
    
    
    23,565
    
    
    
    169,612$
    2,746,684
    
    
    $
    3,143,199
 12.
    
    Recent Accounting Pronouncements   15




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MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
       16




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MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
    Recently Issued Accounting Pronouncements Not Yet Adopted
  13.
    
    Fair Value of Financial
Instruments
  Cash
  Trade
Accounts Receivable
  Trade
Accounts Payable
  Revolving
Credit Facilities
   September 30, 2009
    
    Carrying Amount
    
    
    Fair ValueCash
    
    $
    5,680,200
    
    
    $
    5,680,200Trade accounts receivable
    
    
    2,291,613
    
    
    
    2,291,613Trade accounts payable
    
    
    936,682
    
    
    
    936,682Revolving credit facilities
    
    
    1,609,122
    
    
    
    1,609,122
 14.
    
    Subsequent Event
   17




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Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of
Operations.
  Net sales :
 Gross profit :
 Selling expenses :
 General and administrative expenses :
 Research and development expenses :
 Other income (expense) :
 Income
taxes :
  18




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Critical Accounting Policies:
 General
 Accounts Receivable and Allowance for Doubtful Accounts
 Inventories
 Long Lived Assets
  19




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Revenue Recognition
 Goodwill
  Income
Taxes
 Stock-Based Compensation
  20




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Recent Accounting Pronouncements
          Recently Issued Accounting Pronouncements Not Yet Adopted
   21




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Forward Looking Statements
  Liquidity and Capital Resources
   Revolving Credit Facilities
    22




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1 2
 Off-Balance Sheet Arrangements
  Other
  
 Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk.
 Market Risk:
  Interest Rate Risk:
  
 Item 4T.
    
    Controls and Procedures.
   23




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Part II- OTHER INFORMATION
 
 Item 1A.
    
    Risk Factors
  
 Item 6.
    
    Exhibits
 Exhibits 31.1- Rule 13a-14(a)/15d-14(a) CertificationExhibits 31.2- Rule 13a-14(a)/15d-14(a) CertificationExhibits 32.1- Section 1350 Certification of Chief Executive OfficerExhibits 32.2- Section 1350 Certification of Chief Financial Officer
  24




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SIGNATURES
   MISONIX, INC.(Registrant)By:
    
    /s/ Michael A. McManus, Jr.Michael A. McManus, Jr.President and Chief Executive OfficerBy:
    
    /s/ Richard ZarembaRichard ZarembaSenior Vice President, Chief Financial Officer,Treasurer and Secretary
  25